Fast-Flight Inc., started operations in 2021 and uses IFRS. The following financial information was provided to you, reported as at December 31, 2022:

Fast-Flight Inc.

2022

Revenues $ 810,000

Depreciation expense 150,000

Other operating expenses 530,000

Pre-Tax Accounting Income 130,000

Property, Plant and Equipment, cost $ 1,400,000

Accumulated depreciation 230,000

Unearned rent revenue $ 40,000

Additional information:

Fast-Flight has a tax rate of 25% in 2021, 30% in 2022 and 35% in 2023 enacted only in February each year.

Fast-Flight claimed total capital cost allowance for tax purposes of $255,000 in 2021 and $160,000 in 2022. There were no additions to or disposals of depreciable assets in either year.

In 2021 Fast-Flight sold an excess parcel of land for an amount of $500,000, generating a gain of $200,000. The receipt of cash from this sale was 30% down payment with the balance to be received, 40% in 2022 and 30% in 2023. However, this gain is only taxable in proportion to the collection of sales amount in a given year.

The unearned rent revenue represents cash received in 2022 from a renter who will be moving into the building on February 1, 2023, and relates to rent due in 2023. For tax purposes any cash received for future rent is taxed when the cash is received.

Revenue in 2022 includes dividends received from taxable Canadian corporations of $10,000 and is not taxable.

1. Prepare all tax related journal entries to record income taxes for 2022. Show in detail computations/reconciliation to support your answers.

2. What are the deferred tax amounts to report on the, balance sheet for years ended December 31, 2021 and 2022.How would they be classified (current-non-current) for 2022 only? If ASPE was used how would they be classified for 2022 only?

3. Prepare the income statement beginning with income before taxes for 2022.

4. For this part only, assuming that in 2021 a taxable loss of $500,000 was incurred and that it was thought at the time that only 40% of that amount would likely be applicable against future taxable incomes. Provide the journal entry in 2021 to reflect this, and provide any changes/additions/deletions to journal entries done in part 1 -3 above to consider this 2021 taxable loss.